With our daily lives moving so fast, when it comes to taxes, let’s be honest, it’s the last thing people want to tackle. Taxes can be stressful, overwhelming, and genuinely confusing, and sometimes it’s hard to know what next steps to take.
When filing your taxes, many details can be missed, leaving a wide range for mistakes to be made.
And it could result in severe penalties with the IRS. The good news is you aren’t alone!
Working with a professional tax specialist will not only assist in eliminating the guesswork but also bring a profound sense of relief, ensuring you are on track and moving forward with all things taxes.
What are the most common tax problems people face?
● Unfiled or late tax returns
● Owing tax debt
● Wage garnishments or bank levies
● IRS or state tax audits
● Business tax issues
In this article, we will discuss commonly experienced issues when attempting to delve into the woes of taxes and how working with a tax specialist, with their expert knowledge and experience, can help. Remember, the key is to stay calm and call a tax specialist. This will guide you through the process and put you back in control of your tax situation!
Common Tax Problems
1. Unfiled or late tax returns
One of the most commonly made mistakes in the tax world is not filing tax returns on time. Naturally, life gets in the way, and overwhelming questions and concerns may be left unanswered. Unfortunately, depending on the situation, this honest mistake could lead to potential failure-to-file and failure-to-pay penalties from the IRS. Also, if you were owed a refund for the unfiled return, you have 3 years from the initial filing date to collect your return, or you could risk losing the money altogether.
How a tax specialist helps: Handing off the job to a tax specialist right off the bat will ease your stress, assist in avoiding mistakes, and streamline the entire process. A professional tax specialist will independently gather your W-2s and any other necessary income documents you may not even be aware that you need. Tax specialists can minimize any potential damage caused by unfiled or late tax returns by requesting penalty abatement for first-time offenders or for reasonable cause. This way, you have someone fighting for you and quickly assisting you with correcting any previously made errors, reducing penalties.
2. Owing tax debt
Typically, many will find themselves in debt with the IRS for a myriad of reasons, such as miscalculating self-employment income, underpaying estimated taxes, and more. The bad news is that tax debt never disappears, and must be dealt with; otherwise, situations such as liens being filed against your property by the IRS, or your wages could be garnished for payment. Thankfully, these situations can all be avoided!
How a tax specialist helps: By immediately reviewing your IRS transcripts, a tax specialist will be able to review the exact balance owed and check for any discrepancies. After determining your actual debt, a specialist will evaluate your eligibility for programs such as installment agreements, offers in compromise, or currently not collectable.
3. Wage garnishments or bank levies
What many may not realize is that by ignoring any unpaid tax debt, the IRS has the full capability to collect what is owed. Collecting any unpaid debt could result in garnishing wages, freezing bank funds, or placing liens on your property. These actions made by the IRS could put you in a challenging financial situation.
How a tax specialist helps: If you find yourself in this type of situation, a tax specialist can quickly assist by reaching out to the IRS and requesting a collection hold or negotiating a release of the levy. Hiring a tax specialist allows the potential to stop garnishments, restore access to your accounts, and prevent future situations from occurring.
4. IRS or state tax audits
If you receive an audit notice, there is no need to panic! Although it can be intimidating, it may not mean you are directly in the wrong. The IRS sometimes randomly selects returns to be audited, or returns that include income levels that the IRS wants to look into further. An audit typically includes verifying incomes or deductions. If not appropriately handled, the situation could escalate quickly.
How a tax specialist helps: Hiring a CPA (Certified Public Accountant) or an enrolled agent can represent you when contacting the IRS. These specific specialists will do the background work, such as reviewing your return for any discrepancies, and respond to all IRS inquiries.
5. Business tax issues
Specifically for business owners, dealing with taxes can become very complicated and overwhelming. For instance, unfiled tax forms or missed payroll tax deposits can result in severe penalties. Other issues could include misclassification of employees, failure to pay estimated taxes, or failure to keep proper records.
How a tax specialist helps: Hiring a tax professional who specializes specifically in business tax law will assist in reviewing all bookkeeping records, reconciling accounts, and even adjusting or correcting any prior-year filings. Also, a specialist can implement an organized, reliable system such as automating payroll submissions, tracking quarterly payments, and ensuring proper classification of all workers.
Related Questions
What happens if I haven’t filed taxes in several years?
If you have unfiled tax returns, the IRS may file a Substitute for Return (SFR) on your behalf, often resulting in a higher tax bill. Filing accurate back returns quickly can reduce penalties and prevent enforcement actions. A tax specialist can help you gather documents, understand the potential consequences, and file correctly to mitigate these issues.
What are my options if I can’t afford to pay my taxes?
You may qualify for relief programs such as an Offer in Compromise, Currently Not Collectible (CNC) status, or a partial payment installment plan. Each program has strict eligibility requirements, but a tax professional can help you understand these requirements, determine which program best fits your financial situation, and guide you through the application process.
What triggers an IRS audit?
Mismatched income, large deductions, self-employment income, or random selection may trigger audits. While most audits are routine, having professional representation ensures accurate documentation and helps protect your rights during the process.
Tax Specialist in Canton for Filing, Tax Problems & More
Running into trouble with taxes is more common than you might think. Many people face these common issues, such as unfiled returns, tax debt, wage garnishments, audits, and business tax problems. Each challenge can result in severe financial penalties or enforcement actions from the IRS.
Tax Avenger in Canton is the tax specialist you need. We have been helping individuals and business owners navigate these difficulties, avoid costly mistakes, access relief programs, and regain financial control for more than twenty years. When you stay proactive and work with an experienced CPA, you can enjoy a smoother tax experience and better outcomes. Call and speak to a CPA today.